Globalisation

Question 1

Define globalisation.

Answer 1

The process of the world’s economies, political systems and cultures becoming more connected

Question 2

What are the 6 causes of globalisation?(clue: 5 flows)

Answer 2

• flows of information
• flows of capital
• flows of products
• flows of services
• flows of labour
• global marketing

Question 3

How do flows of information make the world more interconnected? Give an example

Answer 3

Cultures and traditions can be learnt without going there

Question 4

Define capital

Answer 4

Money that is invested

Question 5

Define flow of labour

Answer 5

Movements of people who participate in the workforce from one country to another

Question 6

Give an example of information.

Answer 6

Financial data of current events

Question 7

What has been a catalyst in the spreading of information ?

Answer 7

Improvements of technology- email, internet and social media

Question 8

Historically, capital was invested within a country. How has this changed?

Answer 8

Capital invested into foreign countries has increased (FDI)

Question 9

What has been a catalyst in the vast movement of capital around the world?

Answer 9

Improvements in ICT mean money can be transferred instantly around the world through the internet

Question 10

Give a reason how flows of capital have caused inter connectivity between nations.

Answer 10

Most countries’ economies are now dependent on flows of investment to and from other countries

Question 11

International trade is increasing. Why is this? (in relation to manufacturing industries)

Answer 11

Manufacturing origins have moved from MEDCs- where it is bought where it’s sold to LEDCs

Question 12

Why has manufacturing origin shifted ?

2 reasons

Answer 12

Labour costs are cheaper

Fewer rules and regulations

Question 13

How has changes in the flows of products lead to inter connectivity around the world?

Answer 13

Countries need to import products from where they’re produced and the producing countries need to sell them to the buyers

Question 14

Give a reason as to how services have become global industries?

Answer 14

Improvements in ICT as services can locate anywhere in the world and serve customers all over the world

Question 15

Services are split into high and low skill. Give an example of both.

Answer 15

High: financial services ( in MEDC cities)
Low: customer services ( in LEDCs where labours cheap)

Question 16

How can someone be interconnected with the world due to flows of services?

Answer 16

Having a bank account located in a foreign country

Question 17

How has flows of labour increased interconnectivity?

Answer 17

People bring aspects of their culture with them

Question 18

Give a reason for flows of labour.

Answer 18

Pull: highly skilled workers move where working conditions and wages are better

Push: low skilled workers move to escape conflict zones and unemployment

Question 19

Define marketing.

Answer 19

Process of promoting and selling products or services

Question 20

Global marketing involves treating the world as one ……. market and using the ……. marketing strategy to advertise to customers all over the world

Answer 20

Single

Same

Question 21

Global marketing gives economies of scale. Explain what this means.

Answer 21

It is cheaper to have one marketing campaign rather than multiple different ones for different countries

Question 22

Give 2 benefits of global marketing.

Answer 22

Brand awareness

Economies of scale

Question 23

What implications can regional markets cause?

Answer 23

Marketing may need to be adapted as populations have different attitudes (eg religions and alcohol)